Flat Tax?

[Steve Bruns]

Thank you for the response to my question.  Perhaps I should have been more specific.  I
did indeed mean "taxable income" where I used "income".  Also, reference directing
economic activity, I meant the entire tax structure not simply the federal income tax
code.   Roger the "not very efficient and fraught with unforeseen consequences" though
the manipulative aspects of taxing policy have probably moved to other venues.

Confiscatory, regressive SS/RR Retirement payroll taxes certainly have an effect on the
direction of the economic activity in my neighborhood.

Steve Bruns

"Henry C.K. Liu" wrote:


> The reason for the complexity in determining the taxable income is in claiming the
> deductions, not in determining gross income.  The use of the income tax to direct
> economic activities has been largely reduced by the limitation on deductabilities and
> the drop in the maximum rate (from 90% to 33%).  This is why many tax-driven
> investments and philanthropies are out of business.
> It is generally acknowledged that the use of the tax code to direct economic policy
> is not very efficient and fraught with unforeseen consequences.
>
> Henry C.K. Liu
>
>